Marketing Strategy Of Tesla. The Mission Of The Organization

Marketing Strategy of Tesla
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Marketing Strategy of Tesla
The mission of the organization
Tesla Inc. has promoted innovative ideas in the vehicle industry to excellent levels. The company has ushered a new era in the industry through the creation of electric cars. According to the firm, the vehicles implemented are more efficient, sustainable and reliable. The firm keeps on changing its mission and vision to enhance the achievement of the main objective in changing to accommodate the manufacture of electric automobiles. All the efforts made have yielded positive impacts, resulting in the rapid growth and development of Tesla. For example, Tesla got credit for leading the market selling of plugin passenger cars in 2018 (Mission Statement Academy, 2019). As will be shown later, the company also works to accelerate the transition of the world to sustainable energy with its investment in battery systems that look to store renewable energy.
The company wants to lead global companies in the production of electric automobiles in the future. All the stakeholders in Tesla work hard to ensure effectiveness in the effort to achieve the stated mission. The management ensures efficient business processes to innovate and maintain the brands of cars innovated by the company (Mission Statement Academy, 2019). Proper coordination between the management and all employees ensures continuous running of the business resulting achievement of the set goals. Tesla follows strict core values that enhance the achievement of the company's mission. The world can attest that Tesla lives by its value of ‘always do your best.’ Through the ups and downs, the company has kept the faith and continued working towards the attainment of its goals. Aside from the above, Tesla also appears committed towards its core value of ‘respect the environment.’ With its commitment to sustainable energy, the company appears to also be respecting the environment by leading by example. Tesla has also attained the provision of a clean environment through the use of clean energy sources, unlike tradition cars that used fossil fuels leading to pollution of the environment (Mission Statement Academy, 2019). Tesla has exceeded global expectations by allowing customers to influence the aspects of the ordered products. The company reveals high respect for the interests of its customers in the manufacturing of products.
Target markets
Tesla has a target of absorbing a special of individuals (with a particular taste) and also private investors. According to (Wells, 2019), the management in the company knows that the wealthy groups will warm up to the idea of buying the cars to fulfill the fantasy of how powerful people should change the world since Tesla works towards a similar achievement. Hence, the company is assured of excellent sales and profits through the successful adoption of the group. Despite the quoted prices of the cars, the elite customers would always look at the luxury and benefit of the product. On the other hand, private investors would like to improve their sectors and investing the buying of cars of Tesla will help in achieving the goal and also changing the world. Tesla has targeted the elite people and participants in the private sector, resulting in significant sales.
The brand of cars manufactured by Tesla attracts great demographics of customers. The company has gone a further step to create attention in the absorption of the premium electric sports cars market. Tesla wants to change the field into one that uses new technology cars with clean energy and more benefits than traditional cars. Although the plan many take long before actual implementation, the management is assured of tremendous benefits from the achievement. As planning is not always enough, the company has taken an action of introducing the innovated model X series into the market (Wells, 2019). The company has laid close focus on the group to understand its interest and enhance trust. Tesla positions the priority of every group of customers to high levels to ensure the attraction of the potential consumers of the products.
Tesla uses various methods like demographics, behavior and geographic location of individuals to identify the target markets. Choosing the right demographic is an assurance of the high benefits and management of loyal customers of Tesla (Wells, 2019). The high spirit of the company keeps the business moving even in the face of challenges. If the company goes through reduced turnover, the management hopes for increased sales in the future, resulting in the smooth running of the business at all times.
SWOT analysis
The SWOT analysis describes the weaknesses, strengths, opportunities, and threats of Tesla. The firm has basic strengths origination from the internal strategic planning of the management. The strengths include perfect innovative processes, production of strong brands and high efficient control on the production processes (Kissinger, 2018). These strengths ensure continuous growth and development of the company by empowering the unit to work against all competing firms. The assured growth results in long term benefits of maximum achievement of profits. However, the organization has various weaknesses that may limit performance. The SWOT analysis defines the weaknesses as the aspects limiting the level of competitiveness and achievement of substantial growth. There are also obvious opportunities and threats in the market that could make it difficult for Tesla in the long-run. Below are specific strengths, weaknesses, opportunities, and threats facing Tesla.
Strengths
* Great or top employer in the automotive industry – the success of any company starts with its employees and Tesla has been on a mission to become one of the best employers in the U.S. This thus serves as one of its strengths.
* Currently, the producer of the best-in-class electric vehicles – Tesla is by far the best producer of classy electric vehicles. Other companies will soon catch up but at the moment Tesla enjoys this tag.
* Highly innovative – to maintain the first position in electric car manufacturing means that the company is highly innovative. Model S and Model 3 are profitable products that continue to enhance the company’s bargaining chips.
* Dominates the U.S. electric vehicle market – the U.S. is Tesla’s main market and continues to drive its sales up.
* Diversification – aside from manufacturing cars, Tesla has also ventured into the business of producing batteries. The company looks set to dominate enhance its commitment to sustainable energy.
Weaknesses
* Unable to meet demand – on a number of occasions, Tesla has been unable to meet its demand. The company has shown several times that it lacks the capacity to produce in high volumes and this thus limits its influence.
* Battery problem – supply of batteries has also been a problem for Tesla. The company is working to resolve this issue but in the meantime, it remains a major issue.
* Chicken vs egg problem – a lack of charging stations limits the number of cars Tesla can sell.
* Highly-priced – compared to its gasoline equivalents, Tesla’s models are relatively expensive and this can discourage customers.
Opportunities
* Expansion into new markets.
* Building a less expensive model.
* Producing batteries in-house.
Threats
* Competition from other automotive manufacturers.
* Flaws in Tesla models.
* Customer acceptance of the change or switch to electric vehicles.
* Lack of consumer confidence in self-driving cars.
Marketing strategy (4ps)
The marketing strategy used by Tesla stands out in the automotive industry. The plan involves the use of a marketing mix using 4Ps that include price, promotion, product and place (Kissinger, 2018). The mix identifies the products sold to the target customers. Tesla ensures the production of commodities fitting in the automobile industry including, solar panels, automobiles, batteries, and electric vehicle powertrain aspects. The mix considers the place of distribution for the manufactured products. The major aim of valuing geographical location is to ensure efficient reach by the potential customers. Although the company may invest in various places, the elements of location are similar to ensure the achievement of business goals.
Tesla uses the marketing mix to manage communication plans and tactics. The tactics are made to enhance the promotion of commodities (Kissinger, 2018). The promotional mix entails various elements like personal selling, direct marketing, and viral marketing. These aspects are sufficient as they have enabled the company to reach out to potential customers most appropriately to every significant population. Finally, the last marketing strategy in the mix involves pricing (Kissinger, 2018). Tesla’s cars can be said to more expensive compared to their equivalent gasoline cars. However, with its promotional mix, the company has been able to maintain reputable sales while also improve its profitability.
Marketing department organization
Tesla has a unique organizational culture that constitutes to the smooth running of the business. According to (Dudovskiy, 2018), the company operates under various divisions such as software, energy, sales and legal and finance. Several vice presidents oversee the efficient operations of every division, except the software department that’s led by one vice president and a Director of Artificial Intelligence. The director ensures regulation of up to date technology in the provision of innovated products. Tesla has benefited from these organizational structures because the top management doesn't have to manage all the employees. The vice presidents take charge of all departments effectively resulting in high outputs.
The electric automaker helps in the promotion of efficient communication between different divisions. The increased speed improves the decision making processes in the company as all the departments get the desired information at the right time through the use of improved technology. Tesla has gained flexibility in business management through the swift decision-making process on all business operations (Dudovskiy, 2018). All the vice presidents know the expectations of the company towards the achievement of maximum benefits. The company changed to adopt the organizational divisions to avoid hectic management processes and slow achievement of growth and development. The multiple divisions report to the CEO for maximum monitoring the progress of the structures towards the achievement of business goals and objectives.
The organizational structure of Tesla is going through changes to promote efficiency in business operations. The CEO seeks to improve the communication strategies used around the organization to ensure better practices and the ultimate achievement of an excellent company's culture. The reforms aim at the eradication of all aspects that don't promote the success of the business. The CEO wants to expand the divisions and management to ensure that the organization works towards the achievement of its mission (Dudovskiy, 2018). The alignment will result in the achievement of the business goals and earn Tesla's competitive advantage. Tesla uses the unique organizational structure to enhance survival in the highly competitive markets and also ensure efficient management processes within the business unit.
Value proposition
The idea of Tesla was conceived by people who believed that the world will be a better place with electric vehicles. Tesla’s about page puts it more accurately as it states: “Tesla was founded in 2003 by a group of engineers who wanted to prove that people didn’t need to compromise to drive electric – that electric vehicles can be better, quicker and more fun to drive than gasoline cars.” The idea was expanded to include sustainable energy as Tesla is also working to make the world a better place. Some of Tesla’s contributions in the sustainable energy include its production of solutions such as “Powerwall, Powerpack, and Solar Roof.” This as indicated in the company’s website helps users (i...